GLOBAL HEALTHCARE SERVICES

NEWMARK

Q2 2021 Healthcare M&A Report: Transaction Revenue Remains High

Commentary by: Eric Murphy, Managing Director, Global Healthcare Services


Healthcare merger and acquisition activity for the second quarter of 2021 followed similar trends to the first quarter, with fewer transactions announced. Still, the transaction revenue remains high and above the total transaction revenue for 2020. Kaufman Hall reported in its Healthcare Merger & Acquisition Activity Report: Q2 2021 that 14 transactions were announced in Q2 2021 with an average seller-size revenue of $604 million. While the number of transactions has been lower than pre-pandemic years, the average seller size is well above historical averages.


As previously reported in Newmark’s Global Healthcare Services Q1 2021 report, we anticipate seeing more M&A activity influenced by providers’ strategy for a partnership that creates scale, reorganizes operations and grows medical services in local markets. The transactions announced in Q2 have followed that strategy, with regional partnerships being the key factor that streamlines market presence and grows medical services in local markets.


Several notable transactions that took place in Q2 include:



  • Spectrum Health and Beaumont Health in Michigan announced intention to form a combined system

  • Piedmont Healthcare to acquire 4 GA hospitals from HCA

  • University Health Care System in Augusta GA plans to join Piedmont Healthcare

  • Rush Health Systems (Mississippi) announced plans to merge with Ochsner Health (Louisiana)

  • Medical University of South Carolina plans to purchase 3 hospitals in Richland and Kershaw Counties from LifePoint Health




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All information contained in this publication is derived from sources that are deemed to be reliable. However, Newmark has not verified any such information, and the same constitutes the statements and representations only of the source thereof, and not of Newmark. Any recipient of this publication should independently verify such information and all other information that may be material to any decision that recipient may make in response to this publication, and should consult with professionals of the recipient's choice with regard to all aspects of that decision, including its legal, financial, and tax aspects and implications. Any recipient of this publication may not, without the prior written approval of Newmark, distribute, disseminate, publish, transmit, copy, broadcast, upload, download, or in any other way reproduce this publication or any of the information it contains. This document is intended for informational purposes only and none of the content is intended to advise or otherwise recommend a specific strategy. It is not to be relied upon in any way to predict market movement, investment in securities, transactions, investment strategies or any other matter.

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